Britain's Defence Secretary Philip Hammond said today that "every possible option" to protect Briton was being considered

Options: Hammond (left) says Britain was already aware of the British hostage

The Government has not ruled out a rescue bid being made for the British ISIS hostage who featured in the horrifying video of Steven Sotloff's murder.

Following this morning's emergency Cobra meeting in Downing Street British Defence Secretary Philip Hammond confirmed the ISIS video showing the killing of American journalist Steven Sotloff was genuine.

He said "every possible option" would be looked at to protect the British hostage who was shown in the video.

"We have been aware of this hostage for some time," he said.

"But we have to deal with Isis on the basis of the wider threat that they pose to the British public as well as this individual."

Determined: Obama (left) said Sotloff's murder was an "horrific act of violence"

The US launched a rescue bid in Syria in July but failed to find any hostages.

"[The ISIS video] doesn't make any difference at all to our strategic planning. If we judge that air strikes could be beneficial … then we will certainly consider them. But we have made no decision to do so at the moment."

Meanwhile the former First Sea Lord, Lord West, said the Government should air strikes against ISIS militants.

Lord West, who is a member of the National Security Strategy Committee, said the option of air strikes "should be on the table" following the threat to kill a British hostage.

US President Barack Obama said: ""Our objective is clear - to degrade and destroy Isil so that it's no longer a threat, not just to Iraq but also the region and the United States."

Western leaders have reacted to the gruesome footage released by the Islamic State last night of a crazed British fanatic carrying out the murder of US journalist Sotloff.

As he paraded another hostage – a man who is believed to be British – the thug threatened to commit more murders unless world leaders bowed to the demands of the Islamist terror group.

In the video – called A Second Message to America – the masked executioner speaking with a London accent rants: “I’m back, Obama, and I’m back because of your arrogant foreign policy towards the Islamic State, because of your insistence on continuing your bombings... despite our serious warnings.

PA

Determined: David Cameron condemned the "sickening and brutal murder"

“So, just as your missiles continue to strike our people, our knife will continue to strike the necks of your people.”

Before his execution Steven calmly read out a statement directed at the President.

He said: “Obama, your foreign policy of intervention in Iraq was supposed to be for the preservation of American lives and interests, so why is it that I am paying the price of your interference with my life?

"Am I not an American citizen?”

As he talks, his masked killer stands to his left dressed head-to-toe in black and holding a knife to his side.

The video was released days after his mum, Shirley Sotloff, made an impassioned appeal to IS leader Abu Bakr al-Baghdadi.

Shirley told the captors she had learnt a lot about Islam since her son was taken hostage in Syria a year ago, and she agreed with the religion that “no individual should be punished for events he cannot control”.

Addressing al-Baghdadi, she said: “Steven is a journalist who travelled to the Middle East to cover the suffering of Muslims at the hands of tyrants.

“Steven is a loyal and generous son, brother and grandson. He is an honourable man and has always tried to help the weak.”